60 Day Rollover
Individual age 61 is in process of selling her current home and buying a new one.
She will take a $260,000 distribution from her IRA for the new home purchase and then redeposit/rollover the funds into her IRA within 60 days with proceeds of sale of current home.
Her question is what happens if she is only able to redeposit/rollover only $240,000 and not the full $260,000. Is she then taxed on only the $20,000 that she wasn’t able to rollover back into the IRA?
She plans on having no taxes withheld from the $260,000 distribution.
Thanks.
Permalink Submitted by Alan - IRA critic on Mon, 2021-05-03 16:26
This is risky since many real estate closings fail to occur within the desired time limit. If she has not done a prior rollover in the last 12 months, any portion of the 260,000 rolled back within 60 days will not be taxable.